IRS Increases Mileage Rate

The Internal Revenue Service recently increased the optional standard mileage rates for the remainder of 2008. Taxpayers may use the optional standard rates to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.

The rate has now increased to 58.5 cents a mile for all business miles driven through Dec. 31, 2008. This is an increase of eight cents from the previous 50.5 cent rate. In recognition of consistently high gasoline prices, the IRS made this special adjustment for the final months of 2008.